ResMae Goes Bankrupt

Subprime wholesaler ResMae Mortgage, Brea, Calif., has filed for bankruptcy protection, but has agreed to sell certain assets to Credit Suisse for an undisclosed sum.Industry sources said ResMae -- like many subprime funders -- has been hurt by buyback requests from Wall Street. According to the firm's bankruptcy filing, its unsecured creditors include warehouse providers Barclays Bank, Merrill Lynch, and others. As of MortgageWire's deadline, ResMae officials could not be reached for comment. Credit Suisse, which is not listed in the filing as a large unsecured creditor, declined to comment. On Feb. 12 ResMae filed a voluntary petition for reorganization. The asset sale to Credit Suisse will require court approval. The Wall Street firm, which also operates a subprime wholesale platform, has agreed to provide warehouse financing to ResMae allowing the nondepository "to operate in a normal manner during the reorganization," according to a statement released by the lender. According to the Quarterly Data Report, ResMae ranks 23rd among all subprime funders and 30th among servicers. ResMae is one of a dozen or so nondepository subprime lenders that have failed in the past 60 days. The company can be found on the Web at https://www.resmae.com.

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